Coupon redemption system

Abstract

A system for processing coupons includes a coupon scanner for reading information from a coupon and a host processor for using the information to determine whether the coupon is valid. The coupon scanner includes a coupon modification unit for use in modifying valid coupons so that the coupons are no longer redeemable. The coupon scanner also includes a coupon sorter for sorting valid coupons between the coupon modification unit and an audit lock box unit that stores unmodified valid coupons for eventual audit. The system further includes a rejected coupon lock box unit for temporarily storing selected coupons that were rejected by the coupon scanner but which were still redeemed by store personnel. The stored rejected coupons are later analyzed by a third party service provider to determine if they were validly redeemed by the store.

Description

[0001] This is a continuation-in-part (CIP) of U.S. patent application Ser. No. 09 / 250,207 filed Feb. 16, 1999, and a continuation-in-part (CIP) of U.S. patent application Ser. No. 09 / 262,345 filed Jul. 26, 2000.FIELD OF THE INVENTION[0002] The present application relates in general to systems for tracking customer purchase transactions and, more particularly, to systems for accurately accounting for coupon usage during such customer transactions.BACKGROUND OF THE INVENTION[0003] Product manufacturers generally distribute coupons as a marketing tool to encourage consumers to purchase their products. The coupons are distributed to consumers through any of a number of different channels, including print media, circulars, direct mailings, e-mail, and the Internet. To redeem a coupon, a consumer must generally purchase an identified product at a retail establishment. The consumer hands the coupon to the checkout clerk who then reduces the total amount owed by the consumer based on the a...

AI Technical Summary

Benefits of technology

[0006] The present invention relates to a system for accurately, efficiently, and predictably managing virtually any coupon that is presented by a customer at a retail establishment or store. In most cases, the system will provide an almost immediate reimbursement to the store (e.g., same day) for coupons properly redeemed by the store. The system is capable of significantly reducing coupon misredemptions and the costs that go along with them. In addition, the system provides an enhanced level of redemption data collection that can be used, for example, to generate detailed reports for the manufacturers. Further, the system provides procedures for handling almost any type of coupon that exists, including hard-to-handle coupons and coupons that are to be audited.

[0009] In a preferred embodiment, the system is maintained (at least partially) under the control of a third party service provider which acts as a intermediary between the store and the manufacturers. That is, the third party service provider has sole access to the storage unit and the rejected coupon lock box and performs all manual verification functions. In addition, the third party service provider has control over the internal workings of the coupon redemption equipment within the store. Because the third party service provider controls the coupon redemption equipment within the store, the possibility of fraudulent misredemptions by store personnel are greatly reduced. Payments to the store for validly redeemed coupons are preferably made by the third party service provider. The third party service provider is then reimbursed by the appropriate manufacturers. Accurate records are maintained for all coupon redemptions and all manual verifications. These records are made available to the manufacturers upon request.

Problems solved by technology

Although not apparent to consumers, the coupon redemption process is relatively complex, involving many processing stages.

The complexity of the process is due to the fact that the manufacturers who issue the coupons want to be relatively certain that the coupons have been properly redeemed before they reimburse the retail establishments.

That is, the product manufacturers are concerned that "misredemptions" might occur where a retail establishment is reimbursed for coupons that were not redeemed according to the conditions on the coupon.

These "misredemptions" can occur unintentionally through, for example, employee error or intentionally through, for example, the perpetration of a fraud by someone in the coupon redemption chain.

The retailers are generally irritated by these chargebacks and will sometimes take retaliatory action by, for example, deducting all chargebacks from the manufacturer's product invoice.

As can be appreciated, this situation can seriously strain the relationship between the retailer and the manufacturer.

However, none of these fixes have provided a system whereby all manufacturers' coupons, from all sources, can be handled in an efficient and accurate manner.

In addition, none of these fixes are capable of providing a retailer with an almost immediate reimbursement of funds for coupons redeemed by the retailer.

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